Key Highlights

  • Invictus Energy commenced rig-up activities and well services mobilisation for Musuma-1 in Zimbabwe's Cabora Bassa Basin, with drilling expected in November 2026.
  • Musuma-1 targets gross mean unrisked prospective resources of 1.2 trillion cubic feet of gas and 73 million barrels of condensate.
  • Zimbabwe's Petroleum Production Sharing Agreement was published in the Government Gazette on 30 October 2026, establishing a framework for future petroleum activities.
  • Invictus reported approximately AUD 7.97 million in cash at 30 September 2026, as expenditure continued on exploration preparations.

Invictus Energy Limited (ASX:IVZ) is an Upstream oil and gas exploration company focused on the Cabora Bassa Project in northern Zimbabwe. The project covers approximately 360,000 hectares and includes the Mukuyu gas-condensate discovery alongside several exploration prospects. The company's latest operational developments centre on preparations for the Musuma-1 exploration well, which will investigate a different geological play within the Basin and potentially expand its hydrocarbon exploration opportunities.

Musuma-1 Rig-Up and Drilling Preparations

Invictus Energy advanced preparations for Musuma-1 during October and early November 2026, completing several activities required before drilling could begin.

On 7 August 2026, the company executed a variation to its existing drilling agreement to secure Exalo Rig 202 for the exploration programme.

A well services contract was subsequently awarded in September 2026, supporting the technical requirements of the planned drilling operation.

During October, Invictus completed the Musuma-1 wellpad, associated civil works and access road construction. The drilling rig was then relocated from the Mukuyu-2 location, with the move completed by 29 October 2026.

On 6 November 2026, the company reported that rig-up activities were progressing and well services equipment mobilisation had commenced.

The commencement of drilling remains dependent on the arrival of outstanding equipment in Zimbabwe and completion of final operational readiness activities.

Musuma-1 represents an important exploration step because it targets a geological setting separate from the established Mukuyu discovery.

Cabora Bassa Resource Potential and Exploration Strategy

Invictus Energy's Cabora Bassa Project includes Special Grant 4571 and additional exploration areas containing prospects across the basin.

The company holds its project interests through an 80%-owned subsidiary, Geo Associates.

Musuma-1 is designed to investigate a prospect with estimated gross mean unrisked prospective resources of 1.2 trillion cubic feet of Natural Gas and 73 million barrels of condensate.

These estimates relate to potentially recoverable Hydrocarbons in an undiscovered accumulation. They do not represent confirmed reserves or an established commercial discovery.

Exploration results will help determine whether the targeted geological structures contain hydrocarbons and whether further appraisal activities may be warranted.

Alongside Musuma-1, Invictus continues to assess potential appraisal and commercialisation pathways for the Mukuyu gas-condensate discovery.

The company is also exploring strategic partnerships and funding arrangements to support its broader development objectives.

Zimbabwe Petroleum Agreement and Regulatory Framework

A separate development occurred on 2 November 2026, when Invictus confirmed that its Petroleum Production Sharing Agreement with the Republic of Zimbabwe had been published in the Government Gazette.

The agreement was originally signed in May 2026 and subsequently gazetted on 30 October 2026.

It establishes a fiscal, legal and commercial framework governing petroleum exploration and potential production activities associated with the project.

The agreement complements the Cabora Bassa Project's National Project Status and provides greater clarity regarding the terms under which future petroleum operations may proceed.

However, the progression from exploration to commercial development remains dependent on technical outcomes, Investment requirements and applicable regulatory approvals.

FY2026 Financial Results and Exploration Expenditure

For the financial year ended 30 June 2026, Invictus Energy reported a net loss after tax of approximately AUD 6.54 million, compared with AUD 4.97 million in FY2025.

Cash holdings at 30 June 2026 were approximately AUD 10.89 million, supported by an AUD 10 million Equity Placement undertaken during the financial year.

Capitalised exploration and evaluation Assets were approximately AUD 131.4 million at the financial year-end.

For the September 2026 quarter, the company reported cash of approximately AUD 7.97 million.

Net operating cash outflows totalled approximately AUD 1.09 million, while exploration expenditure reached AUD 1.74 million, reflecting continued investment in the Musuma-1 drilling programme.

As an exploration-stage company without established commercial production, Invictus remains dependent on available funding and future financing arrangements to support its exploration and appraisal activities.

Upcoming Exploration Milestones and Operational Considerations

The immediate milestone for Invictus Energy is the commencement of drilling at Musuma-1, followed by operational updates and geological findings.

Results from the well could provide additional information about the hydrocarbon potential of the Cabora Bassa Basin beyond Mukuyu.

Exploration uncertainty remains significant because the targeted resources have not been discovered or demonstrated to be commercially recoverable.

Equipment mobilisation, drilling execution, available Capital and regulatory requirements will influence the programme's progress.

Further developments concerning strategic partners, Mukuyu appraisal planning and future funding arrangements will also shape the company's operational priorities.